topic Re: Individual card utilization doesn't matter but zero balances do... in Credit Cards

Individual card utilization doesn't matter but zero balances do...

Ausfarm — Mon, 26 Nov 2007 20:16:03 GMT

Okay,

I'm not trying to challenge the wisdom of those on this forum, but I've read 2 things that get repeated over-and-over again on the forums that aren't necessarily consistent with my FICO experience.

First, I've read all over these forums that BOTH individual cc utilization and overall cc utilization matter to your FICO score. My FICO EQ score is a 799 and one my cards is reporting 80% utilization. You would 80% utilization would kill the possibility of having a FICO score that high, but nope. [By the way, my avg acct history is 8 years --I'm still in my twenties (okay, barely). So, it's possible to get a high FICO score and not be in "old timer" as I read some place].

Second, I've also read that carrying a balance of 1-9% is better than having a zero balance. My Cap1 cc which has a CL of $2000 was reporting a $105 balance (5% utilization). B/c Cap1 refused to give a CLI (even when I called the back-door number), I decided to pay it off and just not use it. 2 days ago, my Cap1 reported the zero balance. My Fico EQ score, previously a 788, jumped 11 points to a 799.

Go figure...

In case you were wondering, my current overall utilization is 14%.

Message Edited by Ausfarm on 11-26-2007 12:16 PM

Re: Individual card utilization doesn't matter but zero balances do...

SonorityGenius — Mon, 26 Nov 2007 20:30:35 GMT

Congrats on the high score!!

.. no comment to the other points.

it is widely accepted because thats what FICO advises and touts on its education pages.

Each individual report is unique; I am sure you have other great things going on besides that 80% utl.. (maybe overall CL is much higher combined?)

Re: Individual card utilization doesn't matter but zero balances do...

fused — Mon, 26 Nov 2007 20:39:17 GMT

Ausfarm wrote:

Okay,

I'm not trying to challenge the wisdom of those on this forum, but I've read 2 things that get repeated over-and-over again on the forums that aren't necessarily consistent with my FICO experience.

First, I've read all over these forums that BOTH individual cc utilization and overall cc utilization matter to your FICO score. My FICO EQ score is a 799 and one my cards is reporting 80% utilization. You would 80% utilization would kill the possibility of having a FICO score that high, but nope. [By the way, my avg acct history is 8 years --I'm still in my twenties (okay, barely). So, it's possible to get a high FICO score and not be in "old timer" as I read some place].

Second, I've also read that carrying a balance of 1-9% is better than having a zero balance. My Cap1 cc which has a CL of $2000 was reporting a $105 balance (5% utilization). B/c Cap1 refused to give a CLI (even when I called the back-door number), I decided to pay it off and just not use it. 2 days ago, my Cap1 reported the zero balance. My Fico EQ score, previously a 788, jumped 11 points to a 799.

Go figure...

In case you were wondering, my current overall utilization is 14%.

Message Edited by Ausfarm on 11-26-2007 12:16 PM

What is CL on the CC reporting 80% util?

Re: Individual card utilization doesn't matter but zero balances do...

Ausfarm — Mon, 26 Nov 2007 20:45:19 GMT

CL is 3500. The balance is 2800.

Re: Individual card utilization doesn't matter but zero balances do...

Anonymous — Mon, 26 Nov 2007 20:53:50 GMT

You're certainly an anomaly. An exception the rules, I suppose.

good going though!

Re: Individual card utilization doesn't matter but zero balances do...

fused — Mon, 26 Nov 2007 21:01:45 GMT

Ausfarm wrote:

CL is 3500. The balance is 2800.

When you look at your reports what does the account Type say? Does it say revolving, installment or home equity loan?

Re: Individual card utilization doesn't matter but zero balances do...

Anonymous — Mon, 26 Nov 2007 21:28:39 GMT

I have to agree with the OP. I had the same experience. Now it is NOT wise to carry a balance on all cards, that will ding you (I should know, accidently let one too many report this month). Better to rotateto keep them figuring in the scoring system.

BTW my high balance card is a Cap 1 for 0% for life.

Get any one card to 90% and you will be slapped. But this is what I have been saying all along..no one listens to me

Message Edited by Brammy on 11-26-2007 04:28 PM

Re: Individual card utilization doesn't matter but zero balances do...

Ausfarm — Mon, 26 Nov 2007 21:42:19 GMT

When you look at your reports what does the account Type say? Does it say revolving, installment or home equity loan?

The account type is revolving.

Message Edited by Ausfarm on 11-26-2007 01:42 PM

Re: Individual card utilization doesn't matter but zero balances do...

Ausfarm — Mon, 26 Nov 2007 21:55:48 GMT

I agree Brammy. I think the key is to have (depending on the number of cards you have) 1 or 2 reporting and the rest showing a zero balance. Of course, try to keep util below 9% and charge the zero cards every once in a while to keep them reporting.

Your 90% util theory is interesting. Utiilization that high seems like risky credit behavior. So, it makes sense to get dinged if you're using 90% of any card.

Re: Individual card utilization doesn't matter but zero balances do...

haulingthescoreup — Mon, 26 Nov 2007 22:03:46 GMT

Maybe the two of you are in a bucket where util (within reason) on one card doesn't matter that much. The BT Bunch Bucket, perhaps.

Note: this is my new explanation for everything mysterious that happens in my life: it's my bucket. Two gorgeous Argentinian floor installers came to my house today to install my new hardwood flooring, tore out all the carpeting, and left, saying that I needed a special kind of glue manufactured only in the Mines of Moria and delivered semi-annually by those few who can escape the Balrog. The reason? it's my bucket.

Re: Individual card utilization doesn't matter but zero balances do...

Anonymous — Mon, 26 Nov 2007 22:08:15 GMT

haulingthescoreup wrote:
Maybe the two of you are in a bucket where util (within reason) on one card doesn't matter that much. The BT Bunch Bucket, perhaps.

Note: this is my new explanation for everything mysterious that happens in my life: it's my bucket. Two gorgeous Argentinian floor installers came to my house today to install my new hardwood flooring, tore out all the carpeting, and left, saying that I needed a special kind of glue manufactured only in the Mines of Moria and delivered semi-annually by those few who can escape the Balrog. The reason? it's my bucket.

With his scores!!!! I WISH!!!! I don't think were are anywhere in shouting distance of each others buckets.

Re: Individual card utilization doesn't matter but zero balances do...

MidnightVoice — Mon, 26 Nov 2007 22:10:14 GMT

Brammy wrote:
With his scores!!!! I WISH!!!! I don't think were are anywhere in shouting distance of each others buckets.

I am within shouting distance of that bucket, but if any of my cards got to >80% util I would be in deep doo doo

Re: Individual card utilization doesn't matter but zero balances do...

Anonymous — Mon, 26 Nov 2007 22:10:30 GMT

I had an anomaly a few weeks ago. I used Cover Girl to conceal it.

@Anonymous wrote:
You're certainly an anomaly. An exception the rules, I suppose.
good going though!

Re: Individual card utilization doesn't matter but zero balances do...

fused — Mon, 26 Nov 2007 22:23:44 GMT

All I can say is my experience has been different than the OP's and Brammy's. I had util on a single CC go up to about 18% and my total util went from 7 to 9% (just went back and looked at my old reports) as a result. Even if I am a high achiever, a 31 point drop seems ridiculous for a 2% increase in my total util. What makes matters worse is this ONLY happened on TU and this is because their scoring version factors in non-revolving open accounts in revolving calculations. If anything, I may just be a victim of a bad scoring model. It just seems impossible to expect to lose 31 points everytime my total util increases by 2%. I will simply run out of points.

Re: Individual card utilization doesn't matter but zero balances do...

haulingthescoreup — Mon, 26 Nov 2007 22:40:12 GMT

@fused wrote:
If anything, I may just be a victim of a bad scoring model. It just seems impossible to expect to lose 31 points everytime my total util increases by 2%. I will simply run out of points.

Shoot, you'll be down with me in no time!

Nah, this is just more TU wackiness. I'm still trying to figure out what kind of credit behavior they value. Besides having a mortgage and having fewer than 50% of all TL's report, that is.

Come to think of it, you might be the poster child for TU-hates-people-without-mortgages. Remember the scores I sent you for my DS? Notice the TU hit! Identical CR's, across the board. (Obviously a different bucket, though.)

Re: Individual card utilization doesn't matter but zero balances do...

MidnightVoice — Mon, 26 Nov 2007 22:45:25 GMT

haulingthescoreup wrote:

Nah, this is just more TU wackiness. I'm still trying to figure out what kind of credit behavior they value. Besides having a mortgage and having fewer than 50% of all TL's report, that is.

Come to think of it, you might be the poster child for TU-hates-people-without-mortgages. Remember the scores I sent you for my DS? Notice the TU hit! Identical CR's, across the board. (Obviously a different bucket, though.)

TU loves me, and DW

Re: Individual card utilization doesn't matter but zero balances do...

haulingthescoreup — Mon, 26 Nov 2007 22:51:24 GMT

MidnightVoice wrote: TU loves me, and DW

As do we all! --well, other than the trolls, of course.

Re: Individual card utilization doesn't matter but zero balances do...

Anonymous — Tue, 27 Nov 2007 00:08:20 GMT

STBDW's experience has been exactly the opposite of OP's.

She received an alert that two CCs that reported zero balances last month both reported 1% util on the same day. This was good for 7 points on EQ (from 765 to 772). Nothing else on her CR changed that day, and her overall util was 14% before and after the new balances reported.

This, in spite of the fact that her EQ ScorePower report complains that she has too many accounts with balances.

Re: Individual card utilization doesn't matter but zero balances do...

Anonymous — Tue, 27 Nov 2007 01:16:31 GMT

I think this is a very YMMV; are there currently still CC who practice universal default? How does that work again? If they do an inquiry and don't like what they see, they arbitrarily jack the rate on their accounts that you have with them? Regardless of your standing with them?

Re: Individual card utilization doesn't matter but zero balances do...

fused — Tue, 27 Nov 2007 01:20:08 GMT

PenguinGeek wrote:
I think this is a very YMMV; are there currently still CC who practice universal default? How does that work again? If they do an inquiry and don't like what they see, they arbitrarily jack the rate on their accounts that you have with them? Regardless of your standing with them?

UD is unfortunately alive and well.